Investment Pitches

Pitch Summary:
Lattice is a fabless leader in low-power field-programmable gate arrays. The company has faced a challenging couple of years due to an inventory overhang among its industrial and automotive customers, which account for approximately 40% of its revenue, following stockpiling during the post-COVID semiconductor shortages. As supply chains normalized, these customers began reducing their excess inventory, which in turn weighed on demand. New management recently expressed confidence that the inventory destocking cycle will be complete by early 2026. Meanwhile, Lattice’s growing presence in AI data centers and robotics applications positions it for strong growth over both the near and long term.

BSD Analysis:
The fund argues LSCC is exiting a destock cycle with secular AI/edge robotics demand ahead. With high gross margins, asset-light model, and new products, earnings inflect as inventories normalize; multiple can re-rate on growth visibility.

Pitch Summary:
Vertex provides tax compliance software through both cloud and on-premises deployments, integrating with enterprise resource planning (ERP) systems primarily for large enterprises (companies with over 250 employees). The company offers comprehensive solutions that automate the full scope of indirect tax processes, including tax determination, data management, compliance, reporting, and document management. Shares detracted from performance during the quarter after Vertex reported strong second-quarter results but lowered its full-year revenue guidance. Management cited a more uncertain demand environment, as customers are expected to delay ERP and software implementations, which overshadowed otherwise solid quarterly execution.

BSD Analysis:
Mixed signals—solid execution but lowered FY guidance due to delayed ERP cycles—suggest near-term growth headwinds. While retention is high, elongating sales cycles and macro sensitivity warrant caution until bookings re-accelerate.

Pitch Summary:
Palomar Holdings is a specialty insurance company providing property and casualty coverage focused on risks such as earthquakes, hurricanes, and floods, primarily serving residential and commercial clients in the United States. The company generates revenue by underwriting specialized insurance policies and collecting premiums from policyholders. We believe Palomar is favorably positioned due to its targeted focus on underserved markets and strategic growth initiatives. During the quarter, shares detracted from performance as investors grew concerned about underwriting quality despite strong second-quarter earnings. Palomar’s combined ratio (i.e., incurred losses and expenses as percentage of earned premiums) came in higher than analyst estimates, driven by elevated expenses and a mix shift from early crop premiums, signaling margin pressure. These concerns overshadowed strong second-quarter earnings, driven by strong premium growth, where management raised its full-year earnings guidance.

BSD Analysis:
Despite premium growth and guidance raise, an elevated combined ratio signals near-term margin pressure and underwriting quality concerns. Until expense trends normalize and mix shifts abate, shares could lag as investors demand proof of sustained profitability.

Pitch Summary:
SPS Commerce provides cloud-based tools that help retailers, suppliers, and logistics partners share product information, manage orders and inventory, and track sales across channels. During the quarter, the company delivered strong fiscal second-quarter results, raised its full-year outlook, and announced a share repurchase program. However, shares detracted from performance after management lowered their medium term organic revenue growth rate, citing more cautious customer spending and longer decision cycles amid macroeconomic uncertainty.

BSD Analysis:
The growth algorithm is intact but decelerating: despite a beat/raise, management’s tempered medium-term organic growth outlook reflects macro caution and elongating sales cycles. While margins and cash generation are strong, multiple compression risk is elevated until demand normalizes.

Pitch Summary:
Artivion manufactures, processes, and distributes medical devices and preserved tissues used in cardiac and vascular surgeries for patients with aortic disease. The business spans medical devices and preservation services. Shares contributed positively during the quarter after Artivion reported a strong fiscal second-quarter earnings and raised its full-year outlook. Management pointed to renewed momentum in its mechanical valves and continued uptake of a new aortic stent graft, and emphasized operating leverage as the business scales. Investor confidence was further supported by progress on the U.S. clinical pathway for an aortic arch device.

BSD Analysis:
Artivion’s raised outlook, device momentum (mechanical valves, stent graft) and pipeline progress de-risk growth. Scaling drives operating leverage and expanding margins. With durable niche leadership in aortic repair, valuation has room to re-rate as revenue visibility improves.

Pitch Summary:
Impinj designs, sells, and licenses a platform based on RAIN RFID—a wireless tagging technology that helps organizations identify and track items across supply chains. Its offering spans small endpoint chips (the tags placed on products), readers, and software that work together to improve visibility of inventory and assets across stores, warehouses, and distribution. We believe Impinj is well positioned as adoption of item-level tracking expands across retail and other industries. We believe the company’s next-generation endpoint chip (the M800 family) is supporting broader use cases and helping Impinj continue to gain share in the RAIN RFID market. During the quarter, shares contributed positively after the company reported stronger-than-expected fiscal second-quarter results and issued an improved outlook for the third quarter. Despite a mixed retail environment, management highlighted ongoing progress with large enterprise rollouts and continued momentum at major customers, while pilot programs in food and grocery are accelerating.

BSD Analysis:
Item-level RFID adoption is broadening beyond apparel, supporting multi-year unit growth and pricing power for Impinj’s M800 family. Strong Q2 beat/raise, enterprise rollouts, and new pilots underscore demand resilience. With operating leverage and share gains, the setup favors sustained revenue acceleration and margin expansion.

Pitch Summary:
Unite Group was added as U.K. REIT valuations fell 20% below NAV. With 65,000 beds across top universities, 95% leased, and modest leverage, Unite offers resilient income. A recent bid for Empiric Student Property caused a selloff, leaving shares at 15-year low P/B. :contentReference[oaicite:9]{index=9}

BSD Analysis:
Unite’s scale, prime assets, and balance sheet support long-term compounding. Temporary dislocation from supply and policy noise presents a contrarian entry point.

Pitch Summary:
Champion Homes remains a top Fund holding and was increased. Orders have softened, but the company’s financial strength, excess production capacity, and ability to integrate financing and retailing make it a top player in affordable housing. Shares trade near five-year lows despite favorable long-term demand trends. :contentReference[oaicite:8]{index=8}

BSD Analysis:
CHMP’s leadership in manufactured housing and vertical integration provide durable moat. Cyclical weakness offers entry; regulatory and financing reforms could reignite growth.

Pitch Summary:
The fund initiated a position after a sharp correction, citing the company’s cost leadership, store expansion, and long-term earnings potential. Management expects margins to recover to 15–17% and EPS growth of 20–30%+ annually as remodeling demand rebounds.

BSD Analysis:
Floor & Decor’s scalable store model, cost-efficient sourcing, and multi-year expansion plan underpin substantial earnings leverage. As remodeling activity normalizes, valuation at cyclical lows presents an appealing entry point.

Pitch Summary:
AAON’s stock rebounded after an overdone sell-off tied to ERP implementation challenges. The fund expects BASX subsidiary growth to exceed 40% annually, supported by rising data center cooling demand. With strong production recovery, AAON targets sustained double-digit EPS growth.

BSD Analysis:
AAON’s focus on customized, energy-efficient HVAC and data center systems positions it for secular growth. Trading at modest multiples post-correction, shares offer attractive upside with 20–30% earnings CAGR potential.

Pitch Summary:
Wynn’s shares surged 37% in Q3 on strong results in Macau and Las Vegas. Management highlighted robust demand and a promising new project in the UAE (Wynn Al Marjan Island), expected to open in 2027. Despite gains, the fund believes shares remain attractively valued at 9.3x 2026E cash flow, with upside from the UAE development.

BSD Analysis:
Wynn’s strong brand equity, luxury positioning, and geographic diversification underpin sustained FCF growth. Macau recovery and UAE expansion offer catalysts. Shares remain undervalued versus peers given high asset quality and cash generation.

Pitch Summary:
Starboard Value presented a detailed activist thesis on Tripadvisor, arguing that the company remains deeply undervalued at only 6.5x FY26E EBITDA compared to peers trading between 12–17x. Tripadvisor’s transformation into an independent, one-share-one-vote entity in April 2025 removed long-standing governance overhangs tied to Liberty and Barry Diller. The presentation highlights that Tripadvisor now operates three distinct businesses—Brand Tripadvisor, Viator, and TheFork—each of which could be separately valued. Starboard advocates a sale of TheFork at 5x revenue, margin expansion at Viator to OTA-like levels (~25–30%), and cost restructuring at Brand Tripadvisor. Under this pro forma scenario, Tripadvisor could trade at just 2.5–3x EBITDA. Starboard also notes that the company has received buyout interest from strategic and financial sponsors, with recent bids in the $18–19 range per share.

BSD Analysis:
TRIP presents a multi-pronged value unlock story. The removal of Liberty’s control resolves a structural discount, while Viator’s growth and potential TheFork divestiture create sum-of-the-parts catalysts. Strong AI-related data monetization potential adds upside optionality. Execution on cost savings and margin recovery could easily double enterprise value.

Pitch Summary:
Ayala Corp. trades near 25-year lows despite holding leading stakes in Ayala Land, Bank of the Philippine Islands, Globe Telecom, and ACEN. Valuations in Philippine equities are depressed amid low foreign ownership. Ayala’s buybacks, asset monetizations, and solid balance sheet offer recovery potential. :contentReference[oaicite:7]{index=7}

BSD Analysis:
AC’s diversified portfolio and balance sheet strength offer compelling risk-reward. Valuation trough and catalysts from asset recycling and buybacks could unlock value.

Pitch Summary:
Rogers has valuable IP and serves growth markets including EVs and aerospace. Following an aborted DuPont buyout, Rogers’ stock weakened sharply. Activist influence and new management have spurred operational restructuring and cost savings initiatives. :contentReference[oaicite:6]{index=6}

BSD Analysis:
Rogers’ niche technology portfolio and activist pressure create a catalyst-rich setup. Margin recovery and portfolio optimization could re-rate shares; strong cash reserves mitigate execution risk.

Pitch Summary:
Boise Cascade was added as a new position. Despite near-term headwinds in U.S. housing, the company’s net cash balance sheet and dual distribution/manufacturing model provide resilience. Industry consolidation offers both downside protection and potential M&A optionality. :contentReference[oaicite:5]{index=5}

BSD Analysis:
Boise’s cyclical low valuation and clean balance sheet create favorable asymmetry. Housing recovery or takeout potential provides upside; FCF strength limits downside.

Pitch Summary:
Third Avenue reduced its position in Deutsche Bank after a multi-year recovery. Since investing in 2018 at distressed valuations, the company under CEO Christian Sewing executed a major turnaround—cutting costs, reducing leverage, and regaining market share. Improved risk culture and higher European interest rates have driven strong earnings and double-digit ROE. :contentReference[oaicite:4]{index=4}

BSD Analysis:
Deutsche’s transformation validates its management and strategic reset. With valuation near book value, upside moderates. Strong capital return and earnings durability justify holding but not overweighting.

Pitch Summary:
Third Avenue exited its long-term holding in Old Republic, which had appreciated significantly as key divisions improved profitability. The company’s mortgage insurance runoff released capital to shareholders, trucking insurance improved, and the board became more shareholder-friendly, culminating in a successful defense against activist pressure. :contentReference[oaicite:3]{index=3}

BSD Analysis:
OR’s operational turnaround and capital return execution drove its re-rating. With business mix normalized and valuation fair, trimming aligns with “selling sunshine.” Strong underwriting discipline and capital flexibility remain hallmarks.

Pitch Summary:
Harbour Energy could benefit from an improving UK regulatory tone. The government is reviewing punitive energy taxation policies that previously deterred investment in the North Sea. Harbour’s global diversification reduces reliance on UK operations, but favorable tax reform could unlock incremental value. :contentReference[oaicite:2]{index=2}

BSD Analysis:
Harbour’s diversified upstream portfolio and balance sheet provide resilience. Any rollback in UK windfall taxes would unlock cash flow optionality and enhance NAV.

Pitch Summary:
Lundin Mining benefited from rising copper and gold prices and operational improvements across its diversified asset base. Its copper mine in Brazil, initially seen as a gold mine with copper byproducts, has turned more profitable due to gold price strength, which supplements earnings from core copper output. :contentReference[oaicite:1]{index=1}

BSD Analysis:
Lundin’s balanced gold-copper exposure provides natural hedge and strong cash flow generation. Rising gold prices and operating optimization support near-term upside; valuation undemanding versus NAV.

Pitch Summary:
Capstone Copper continues to expand its flagship Chilean mine, Mantoverde, which achieved full production in mid-2025. The company plans to further increase output and optimize operations while seeking a partner for its large greenfield project, Santo Domingo. Tight global copper supplies, disruptions in key producing countries, and a weak U.S. dollar have driven copper prices higher, benefiting Capstone. :contentReference[oaicite:0]{index=0}

BSD Analysis:
Capstone’s expansion at Mantoverde and the potential Santo Domingo JV enhance production scale. With copper supply tightness and higher byproduct credits, FCF leverage is high. Valuation remains attractive relative to peers on EV/EBITDA.